U.S. Terminates Extradition Treaty With Hong Kong Over China's Security Legislation : China : Business Times
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U.S. Terminates Extradition Treaty With Hong Kong Over China's Security Legislation

August 21, 2020 10:38 am
The termination of the so-called reciprocal tax exclusion is expected to heavily impact major Hong Kong businesses. (Photo : REUTERS/Tyrone Siu/File Photo)

The United States has officially terminated its extradition accord with Hong Kong, the latest move to pressure China after it implemented an extreme national security measure on the semi-autonomous city.

The Trump administration's latest action is seen to pressure Beijing over worries the government's security law will break the city's independence.

The ending of the agreements follows U.S. President Donald Trump's directives in July to halt the city's special trade privileges under U.S. law as a form of punishment for what Trump called China's repressive actions against Hong Kong.

The U.S. would be eliminating three bilateral agreements with the former British territory, which includes the "surrender of fugitive felons, transfer of sentenced persons, and reciprocal income tax exemptions," the State Department disclosed in a statement.

Since Hong Kong was handed over by Britain to China in 1997, it has has benefited from its special trade and security status with Washington, grounded on the financial hub's high level of sovereigny from China.

In a tweet, U.S. State Secretary Mike Pompeo said China's Communist Party has taken the liberty of quelling the freedom of the people of Hong Kong.

Morgan Ortagus, State Department Spokesperson, said the steps that the U.S. has taken shows its apprehension over China's resolve in imposing harsh security measures.

The termination of the so-called reciprocal tax exclusion is expected to heavily impact major Hong Kong businesses, a good number of whom had counted on such immunity for privilege.

Strongly opposing the U.S. decision, the Hong Kong government said terminating the agreements caused more harm to China-U.S. ties, and took advantage of the city as if it were a "pawn" – an act that the international community must denounce.

Meanwhile, countries like the United Kingdom, Germany, and Australia have also scrapped their extradition accords with Hong Kong over China's national security law.

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